LANSING -- A private business operating within the taxpayer-funded state Capitol?

It could happen.

The Michigan Commission for the Blind has held exclusive rights to provide food services inside state buildings since 1978. But Tim Hortons, the Ontario, Canada-based coffee and doughnut chain, is in talks to acquire space from the commission inside the Capitol building.

MLive media partner WLNS-TV reports a preliminary contract is in place but has yet to be signed off on by the Commission for the Blind. If agreed upon, Tim Hortons would take over the former media room on the Capitol's ground floor.

The international chain also would acquire the restaurant area in the House of Representatives' office building, at the corner of Ottawa Street and Capitol Avenue. The building is situated right across the street from Biggby, which is based in East Lansing.

Michigan Small Business Association CEO Rob Fowler told WLNS the prospect of Tim Hortons moving into the Capitol building is concerning.

"We've always been opposed to unfair competition or government competition with the private sector," he said. "The more we know, the more it looks like that is going."

Senate Minority Leader Gretchen Whitmer, D-East Lansing, also appeared opposed to the idea.

"What's next? Are we going to be called the Chick-fil-A Capitol?" she said.